Is Amazon Prepping YouTube-Like Service? Files AmazonTube Trademark

Amazon has filed a trademark for a YouTube-like service – AmazonTube, according to a report from TV Answer Man. The trademark filing seems to have been inspired by Google’s move of pulling down YouTube support on Amazon devices, a decision that supposedly came as a real shocker to the online retailer.

AmazonTube – what it does?

As per the trademark application’s description, AmazonTube would provide non-downloadable pre-recorded audio, audiovisuals and visuals through a wireless network on a range of topics for the general public. Along with the AmazonTube, the trademark filing also mentions the name “OpenTube.”

Earlier also, there have been rumors of Amazon planning a “freemium” version of Prime Video. However, later the company stated that there are no such plans underway. All this points to one thing, that Amazon is making efforts to develop a YouTube competitor. It is not the first time that the online retailer has been planning something like this. Amazon Video Direct is still alive, and it enables the publishers to upload videos viewable by Prime subscribers.

Should YouTube have fears?

Google discontinued YouTube on Amazon devices citing the reluctance of the retailer to sell Google devices such as Chromecast on its platform.

“Given this lack of reciprocity, we are no longer supporting YouTube on Echo Show and FireTV. We hope we can reach an agreement to resolve these issues soon,” Google said previously.

However, a few days back, Amazon resumed offering Google devices on its platform, and both the companies supposedly were in “productive talks” to bring back YouTube on Fire TV. Google-owned YouTube is the topmost service on the Internet. The video streaming site claims that around a billion hours of videos are watched on the platform per day.

So, there are chances that the absence of YouTube may impact the sales of Amazon devices going forward. In addition, it will be really difficult, even for a company as big as Amazon, to take on YouTube.

“[A]nything Amazon does should concern the leader,” said Wedbush securities analyst Michael Pachter, according to CBS News.

Pachter, however, thinks that YouTube has a massive user base, so there are very slim chances of the Amazon video service denting YouTube’s position.

Meanwhile, sales of Amazon Echo devices are going strong. Amazon Echo devices, especially the Echo Dots, did well through Black Friday and Cyber Monday. There are reports that supply is unable to keep pace with the demand. For instance, Amazon Prime members, who qualify for two-day delivery, have to wait more than that for getting the items shipped. Further, the ordering page says that it will take somewhere around 17 days for the Echo to be shipped, according to pocnetwork.

Author: Aman JainAman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com